Direct selling has been recording heavily declining retail current value sales in the last few years of the review period as consumers in Finland have opted for more modern retailing options in recent years. Direct selling suffers from a negative reputation in Finland.
In 2021, direct selling continued to be led by well-known, long-established and globally widespread direct selling giants, often of US or Scandinavian origin, such as Tupperware, Oriflame and Avon. On the other hand, the channel remains fragmented, with a significant share of sales also accounted for by lesser-known companies, which have not been established for as long and have more fluctuating concepts.
While the landscape has been bleak for years, some companies in direct selling do well. Among global brands, Oriflame increased its sales and value share in 2021.
Direct selling is very rarely seen as a main source of income for anyone, and this is not expected to change over the forecast period, which means that the job is not very attractive to consumers in Finland. At the end of the review period, the average retail current value sales per agent was around EUR2,000 which is far less than the average gross monthly salary in the country.
Direct selling often suffers from a dubious reputation among many consumers in Finland, who incorrectly perceive it as a pyramid scheme. This negative perception will also limit the potential for growth in this channel over the forecast period.
Future prospects for direct selling are undermined by the relatively narrow range of products sold through this channel in Finland. Most direct selling in Finland focuses on beauty and personal care and consumer health.
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Direct selling is the marketing of consumer goods directly to consumers, generally in their homes or the homes of others, at their workplace, and other places away from permanent retail locations. Direct selling occurs in two primary ways: On a one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or on a party-plan basis (selling through explanation and demonstration of products to a group of prospective customers by a direct seller usually in the home of a host(ess) who invites other persons for this purpose). Avon stands as a prime example of a direct seller using one-to-one selling, whereas Tupperware is famous for its party-plan method. Direct selling of services - such as insurance, telecoms, other utilities, and financial services - are excluded.See All of Our Definitions
This report originates from Passport, our Direct Selling research and analysis database.
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